Paul Nolte Comments on Reuters
Wall Street’s predilection for a glass-half-full view of President Donald Trump was on full display Friday as investors backed off fears that a failure to repeal Obamacare would endanger Trump’s entire agenda in favor of optimism that he would simply get on with tax cuts and infrastructure spending.
As the clock ticked down to a close vote in the House of Representatives set tentatively for Friday afternoon, U.S. stocks were little changed even as it appeared that the Republican leadership had yet to secure the support needed to pass the measure.
That was in stark contrast with earlier in the week when equities suffered their biggest one-day drop since the November election on grounds that the shaky prospects for a successful repeal of the Affordable Care Act – known popularly as Obamacare – was a litmus test for everything championed by Trump.
“I think investors are of the belief that Trump is just going to pivot to taxes,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “I think it’s a pivot from what we saw on Tuesday.”
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